Real Estate Guy is reporting the national annual home permits issued as follows.  (permits is as close as we can get to home starts, the number of new homes being built.) 


single family homes, numbers in thousands


1960         National      745                Midwest                 171

1970                             647                                                148

1980                             710                                                108

1990                             793                                                165

2000                          1198                                                 245


And the more recent years.


2004                           1613                                             295

2005                           1682                                             278

2006                           1378                                             209

2007                             979                                             153

2008                             575                                               93

2009                             441                                               75

2010                             447                                               75


Wow!!!   See the drop.   The peak year was 2005.  2009 and 2010 starts were just 25% of the top years.    Certainly the lowest in this time frame.  


We can see that builders are having a terrible time.  So what does this mean to the Housing market?


In a market which is flooded by an abundance of housing for sale, and foreclosures and short sales coming out of the woodwork.   Taking away the competition and adding of the extra supply from new construction reduces the pool of homes for sale.  It helps keep the market balanced.  It will lead to a speedier recovery.  A speedier recovery means good news for prices and sellers and the economy too.  


However, beware.   It will also leave us short of housing stock down the road, and this can lead to accelerated housing inflation. 

http://wi-realestateguy.blogspot.com/2012/01/low-homes-starts-mean-faster-housing.html

Guy Lofts CRS,  is a long-term area resident who has been helping people make sound housing decisions since 1993.  Guy is a past president of the Wisconsin Chapter of CRS, the Certified Residential Specialists.  He has been a top agent in the office for 8 years and leader in technology, having had his first personalized web page in 1995.  With a first Blog in 2006, Guy is a leader in the Wisconsin Blogging community. Guy has provided training with in his office and is to present a training at this years Wisconsin Realtor convention.

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1 Comments on Record Low housing construction starts. What does this mean to Real Estate?

JAN
18
2012
1,021,826 Points 66 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

New construction in our area is a GREAT way for investors to enter the market as the financing is in place and appraisals are not an issue. 
6:14am • #1


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Guy Lofts CRS Real Estate Guy in Madison, Wisconsin

Madison, WI

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